Workday to buy VNDLY for $510 million to add a solution for external workforce data

Workday, a provider of finance and human resources solutions, announced today that it will buy VNDLY, a contingent workforce management vendor, for $510 million in cash, according to Workday and its Form 8-K filing with the US Securities and Exchange Commission.

Workday said in a statement that the acquisition will let its customers use its solution “to manage the end-to-end process for permanent employees, while unifying the external workforce data from VNDLY, so they can better plan, execute and analyze their total workforce.”

Workday Chief Strategy Officer Pete Schlampp said evolving needs in the market spurred the acquisition.

“As organizations expand the definition of their workforce to meet growing business and talent demands, they need solutions that provide a holistic view of all worker types — including contingent workers — so they can better plan for and meet the great opportunity in front of them,” Schlampp said in the statement. “VNDLY is at the forefront of the vendor management industry with an innovative and intuitive approach. The powerful combination of our technologies and talent will help customers better manage their evolving workforce dynamics, helping them keep pace with today’s changing world of work.”

VNDLY co-Founder and CEO Shashank Saxena said in the statement: “We’ve seen the value of true cloud-based technologies in helping organizations adapt and evolve to a more complex workforce composition. By joining Workday, we’ll be able to expand the value we bring to customers, helping provide greater visibility, collaboration, and oversight to workforce needs and opportunities.”

VNDLY had recently completed a certification partnership with Workday, which also certified the contract specialist Icertis on CLM last year. In 2019, Workday bought the easy-to-use sourcing provider Scout RFP in a $540 million cash deal (see our analyst coverage below).

In September, Workday acquired Zimit, a “configure price quote” solution (CPQ), according to today’s Workday financial statement, which said Workday this year had a total revenue of $1.33 billion, up 20% year-over-year.

VNDLY is in Spend Matters’ SolutionMap, which ranks its technology and customer feedback in the VMS (SOW) category. VNDLY ranks as a Value Leader in two market personas, meaning it has high technical scores and top customer feedback when serving the needs of SME and Mid-market firms.

Both VNDLY and Workday are on Spend Matters analysts’ list of “50 Procurement Providers to Know.”

In the coming days, look for more analyst coverage on the Workday-VNDLY deal.

See Spend Matters’ analyst coverage of VNDLY and Workday here:

• VNDLY: Vendor Analysis (Part 1) — Company Background, Solution Details, Strengths and Weaknesses [PRO]
• VNDLY: Vendor Analysis (Part 2) — SWOT, VNDLY Competitors & Market Overview, Tech Selection Tips [PRO]
• VNDLY: Vendor Analysis (Part 3) — In-Depth Solution Overview [PRO]
• VNDLY — A different breed of VMS or a different solution species altogether? [PRO]
• Vndly Closes $11 Million Series A Funding Round: A VMS Category Buster in the Making? [PRO]
• Vndly: What Makes It Great (Temp Staffing/VMS SolutionMap Analysis) [PRO]
• Workday Strategic Sourcing (formerly Scout RFP): Vendor Analysis, Part 1 — Background, Solution Overview, Strengths/Weaknesses, Tech Selection Tips [PRO]
• Workday Strategic Sourcing (formerly Scout RFP): Vendor Analysis, Part 2 — Deep Dive on 7 Modules, SWOT, Competitors in E-Sourcing, Commentary [PRO]
• Workday and Scout RFP: Customer Recommendations [PRO]
• First Take Analysis: Workday’s Acquisition of Scout RFP (Part 1: Scout Background, Strengths/Weaknesses, Deal Rationale)
• Workday’s acquisition of Scout RFP (Part 2: ERP competitors analyzed) [Nexus]
• Workday’s acquisition of Scout RFP (Part 3: Suite and Best-of-Breed Competitor Analysis and Recommendations) [Nexus]
• Workday acquiring Scout RFP (Part 4: Potential Areas of Solution Integration) [Nexus]